SWIB allocates $150m commitment to Heitman for debt separate account
The State of Wisconsin Investment Board (SWIB) has awarded Heitman a $150m (€132m) real estate debt mandate.
SWIB said in a board meeting document that the Wilson HCF Wisconsin Holdings 8 separate account will target a variety of core US assets.
Target returns are 6% to 7%, which SWIB said compared favourably with return expectations for core real estate equity investments today.
Heitman, which already manages a $442m real estate debt portfolio for the pension fund, declined a request for comment.
SWIB said it had also approved a $150m commitment to the Lone Star Real Estate Fund VI, which raised $4.7bn in a final close this week.
IPE Real Asset recently reported that SWIB had added $389m worth of new commitments and investments to its real estate portfolio.
SWIB said it now has an additional $400m of potential commitments for investments in industrial, senior living and apartment assets, and real estate debt.